KUALA LUMPUR (Nov 5): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) on Thursday reported a wider third-quarter loss, weighed down by higher feedstock costs, increased depreciation and interest expenses, and narrowing profit margins.

The petrochemical group's net loss widened to RM245.5 million for the third quarter ended Sept 30, 2026 (3QFY2026), compared with a net loss of RM168.84 million in the previous year's corresponding quarter, according to its bourse filing. 

The higher depreciation and interest expenses were associated with its Lotte Chemical Indonesia New Ethylene (LINE) project, which commenced commercial operations on Oct 15, 2025.

The impact was partially offset by the reversal of previous inventory write-downs and a share of profit from its associate, Lotte Chemical USA Corp.

Quarterly revenue, however, rose 17% to RM2.85 billion from RM2.45 billion, driven mainly by higher average selling prices, though partially offset by lower sales volume and a weaker US dollar against the ringgit.

For the first nine months of 2026 (9MFY2026), the group’s net loss widened to RM542.39 million from RM467.60 million a year earlier. Nevertheless, its nine-month revenue surged 58% to RM8.49 billion from RM5.37 billion, supported by sales contributions from the LINE project and higher average selling prices.

Lotte Chemical Titan last reported a quarterly net profit of RM104 million in 1QFY2022, and has remained in the red since.

In a separate statement, Lotte Chemical Titan chairman and chief executive officer Jang Seon Pyo said geopolitical and macroeconomic uncertainties continued to affect energy markets and global supply chains, creating a challenging operating environment for the group.

"Renewed tensions in the Middle East, coupled with supply uncertainties and elevated freight costs, have contributed to volatility in crude oil and feedstock prices. Against this backdrop, weak downstream demand continues to weigh on margins, while currency movements may also affect the group's financial performance," he said.

“We remain committed to strengthening our presence in key regional markets, particularly Malaysia and Indonesia, and across Southeast Asia. With regional GDP growth expected to remain bated, we will continue to navigate the current cycle with prudence,” Jang added.

Lotte Chemical Titan’s shares ended half a sen or 1.59% higher at 32 sen on Thursday, giving the group a market capitalisation of RM740 million.